Financial Aid and Scholarship Fraud

Why Pay for Free Services?

Need money for college? Doesn't everybody? With tuition bills
skyrocketing, and room and board going through the roof, students
and their families are looking for creative ways to finance a
college education. Unfortunately, in their efforts to pay the
bills, many of them are falling prey to scholarship and financial
aid scams.

According to the Federal Trade Commission, unscrupulous
companies guarantee or promise scholarships, grants or fantastic
financial aid packages. Many use high pressure sales pitches at
seminars where you're required to pay immediately or risk losing
out on the "opportunity."

Some unscrupulous companies guarantee that they can get
scholarships on behalf of students or award them "scholarships" in
exchange for an advance fee. Most offer a "money back guarantee"-
but attach conditions that make it impossible to get the refund.
Others provide nothing for the student's advance fee - not even a
list of potential sources; still others tell students they've been
selected as "finalists" for awards that require an up-front fee.
Sometimes, these companies ask for a student's checking account to
"confirm eligibility," then debit the account without the student's
consent. Other companies quote only a relatively small "monthly" or
"weekly" fee and then ask for authorization to debit your checking
account - for an undetermined length of time.

The FTC cautions students to look and listen for these tell-tale
lines:

The scholarship is guaranteed or your money back."

"You can't get this information anywhere else."

"I just need your credit card or bank account number to hold
this scholarship."

"We'll do all the work."

"The scholarship will cost some money."

"You've been selected" by a "national foundation" to receive a
scholarship - or "You're a finalist" in a contest you never
entered.

If you attend a seminar on financial aid or scholarships, follow
these steps:

Take your time. Don't be rushed into paying at the seminar.
Avoid high-pressure sales pitches that require you to buy now or
risk losing out on the opportunity. Solid opportunities are not
sold through nerve-racking tactics.

Investigate the organization you're considering paying for
help. Talk to a guidance counselor or financial aid advisor before
spending your money. You may be able to get the same help for
free.

Be wary of "success stories" or testimonials of extraordinary
success - the seminar operation may have paid "shills" to give
glowing stories. Instead, ask for a list of at least three local
families who've used the services in the last year. Ask each if
they're satisfied with the products and services received.

Be cautious about purchasing from seminar representatives who
are reluctant to answer questions or who give evasive answers to
your questions. Legitimate business people are more than willing to
give you information about their service.

Ask how much money is charged for the service, the services
that will be performed and the company's refund policy. Get this
information in writing. Keep in mind that you may never recoup the
money you give to an unscrupulous operator, despite stated refund
policies.

The FTC says many legitimate companies advertise that they can
get students access to lists of scholarships in exchange for an
advance fee. Other legitimate services charge an advance fee to
compare a student's profile with a database of scholarship
opportunities and provide a list of awards for which a student may
qualify. And, there are scholarship search engines on the World
Wide Web. The difference: Legitimate companies never guarantee or
promise scholarships or grants.

South Plains College does not discriminate on the basis of race, color, national origin, sex,

disability or age in its programs and activities.

The following person has been designated to handle inquiries regarding the non-discrimination policies:Vice President for Student Affairs, South Plains College1401 College Avenue, Box 5, Levelland, TX 79336, 806-894-9611